Impact of Corporate Social Responsibility on the Financial Performance of Banks in Pakistan

Shoukat Malik, M.; Nadeem, Muhammad

doi:10.18052/www.scipress.com/ILSHS.21.9

ILSHS > ILSHS Volume 21 > Impact of Corporate Social Responsibility on the...

< Back to Volume

Impact of Corporate Social Responsibility on the Financial Performance of Banks in Pakistan

Full Text PDF

Abstract:

The purpose of this paper is to investigate the impact of Corporate Social Responsibility on the Financial Performance of banks in the service sector of Pakistan. The data is obtained from the annual reports issued by the banks during 2008-2012. To verify the relationship between EPS, ROA, ROE, Net Profit and CSR regression models are used. The results show that there is lack of CSR in Pakistan and the regression model shows that there is positive relationship between profitability (EPS, ROA, ROE, and Net Profit) and CSR practices. The Financial institutions which implements CSR in their operations earn more profit for the long term periods.

Info:

Periodical:

International Letters of Social and Humanistic Sciences (Volume 21)

Pages:

9-19

DOI:

https://doi.org/10.18052/www.scipress.com/ILSHS.21.9

Citation:

M. Shoukat Malik and M. Nadeem, "Impact of Corporate Social Responsibility on the Financial Performance of Banks in Pakistan", International Letters of Social and Humanistic Sciences, Vol. 21, pp. 9-19, 2014

Online since:

February 2014

Authors:

M. Shoukat Malik, Muhammad Nadeem

Keywords:

Banks, CSR (Donation, Education, Health, Social Welfare), EPS, Net Profit, ROA, ROE

Export:

RIS, BibTeX, Text

Distribution:

Open Access

This work is licensed under a
Creative Commons Attribution 4.0 International License

References:

Balabanis, G., Phillips, H. C., & Lyall, J. (1998). Corporate social responsibility and economic performance in the top British companies: are they linked?. European Business Review, 98(1), 25-44.

Carroll, A. B. (1979). A three dimensional model of corporate performance. Academy Of Management Review, 4, 497-505.

Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.

Cochran, P. L., & Wood, R. A. (1984). Corporate social responsibility and financial performance. Academy Of Management Journal, 27(1), 42-56.

Davis, K. (1960). Can business afford to ignore social responsibilities? California Management Review, 2, 70-76.

Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16(2), 312-322.

Hopkins, M. (1999). The Planetary Bargain: Corporate Social Responsibility Comes Of Age. New York: Macmillan.

Idowu, S. O., & Papasolomou, I. (2007).

Iqbal, N., Ahmad, N., & Kanwal, M. (2013). Impact of Corporate Social Responsibility on Profitability of Islamic and Conventional Financial Institutions. Applied mathematics in Engineering, Management and Technology 1(2), 26-37.

Kotler, P., & Lee, N. (2005). Corporate Social Responsibility: Doing the Most Good For Your Company and Your Cause. Wiley. com.

Kramer, M. R., & Porter, M. E. (2006). Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review.

Lea, R. (2002). Corporate social responsibility: IOD member opinion survey. The Institute Of Directors, UK, 10.

McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy Of Management Journal, 31(4), 854-872.

McWilliams, A., & Siegel, D. (2001). Corporate social responsibility and financial performance: correlation or misspecification?. Strategic Management Journal, 21(5), 603-609.

Miles, L. S., & Munilla, M. P. (2005). The corporate social responsibility continuum as a component of stakeholder theory. Business and Society Review, 110(4), 371-387.

Sarbutts, N. (2003). Can SMEs do" CSR? A practitioner, s view of the ways small-and medium-sized enterprises are able to manage reputation through corporate social responsibility. Journal of Communication Management, 7(4), 340-347.

Soloman, R., & Hansen, K. (1985). It's Good Business (Atheneum, New York).

Spicer, B. H. (1978). Investors, corporate social performance and information disclosure: An empirical study. Accounting Review, 94-111.

Nadeem Iqbal, Naveed Ahmad, Zeeshan Haider, Sonia Anwar. Impact of foreign direct investment (FDI) on GDP: A Case study from Pakistan. International Letters of Social and Humanistic Sciences 5 (2014).

Show More Hide

Cited By:

[1] A. Sharabati, "Effect of corporate social responsibility on Jordan pharmaceutical industry’s business performance", Social Responsibility Journal, 2018

DOI: https://doi.org/10.1108/SRJ-12-2016-0221

[2] H. Ali, R. Danish, M. Asrar‐ul‐Haq, "How corporate social responsibility boosts firm financial performance: The mediating role of corporate image and customer satisfaction", Corporate Social Responsibility and Environmental Management, 2019

DOI: https://doi.org/10.1002/csr.1781

[3] M. Mphelo, C. Ngwakwe, "Banks’ social investment and market share", Corporate Ownership and Control, Vol. 13, p. 237, 2015

DOI: https://doi.org/10.22495/cocv13i1c2p2

[4] K. Szegedi, Y. Khan, C. Lentner, "Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks", Sustainability, Vol. 12, p. 4080, 2020

DOI: https://doi.org/10.3390/su12104080

[5] A. Moosa, F. He, T. Arrive, "Impact of corporate social responsibility on corporate financial performance: Evidence from the Maldives stock exchange", Human Systems Management, p. 1, 2020

DOI: https://doi.org/10.3233/HSM-200899

[6] Y. Mughal, M. Jehangir, M. Khan, M. Saeed, "Nexus between corporate social responsibility and firm’s performance: A panel data approach", International Journal of Finance & Economics, 2020

DOI: https://doi.org/10.1002/ijfe.1956

[7] M. Ramzan, M. Amin, M. Abbas, "How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan", Research in International Business and Finance, p. 101314, 2020

DOI: https://doi.org/10.1016/j.ribaf.2020.101314

Show More Hide